Lawmakers Weigh Need for Second Stimulus to Spur Job Growth

By

Greg Hitt

Updated March 11, 2009 6:23 am ET

WASHINGTON -- The ink is barely dry on the $787 billion economic stimulus package enacted by Congress, and talk is already beginning on Capitol Hill of the need for a second measure to spur job growth.

Stimulus Spending by State

See how some of the major stimulus spending will be shared by the states.

Speaker Nancy Pelosi (D., Calif.) said Tuesday that lawmakers must give the just-approved package of tax cuts and government spending a chance to work. The bulk of the funds from the $787 billion package are flowing out of government coffers over the next two years, in hopes of lifting the economy of its downward spiral.

But Mrs. Pelosi suggested she's not ruling out action on another measure if the economy remains weak. "We have to keep the door open," Rep. Pelosi said after a closed-door meeting with several private economists. The speaker stressed the goal of lawmakers is not just to spur job growth, but to shore consumer and business sentiment, as well.

"The word of the day is confidence," she said. "Confidence in our markets, confidence in lending, confidence in our financial institutions."

Congressional aides were quick to stress that no plans are being prepared for imminent action on a second stimulus package, and Mrs. Pelosi offered no details about what might be included in such a measure. But the mere suggestion that Congress stands ready to act again on a stimulus package underscores the depth of concern about the economy on Capitol Hill.

Senate Budget Chairman Kent Conrad
Getty Images

The speaker's meeting with the economists, who included Mark Zandi, chief economist of Moody's Economy.com, came as Democratic leaders are readying action on President Barack Obama's $3.6 trillion budget. Party leaders hope to push the budget through the House and Senate by early April, setting the stage for action on the myriad bills needed to implement the Obama agenda, including measures to combat climate change and widen access to health care.

Senate Budget Chairman Kent Conrad (D., N.D.) warned that unease is growing among Democrats with the budget, which proposes to increase domestic spending and includes several new tax increases. Sen. Conrad urged Democrats to move cautiously. "Please don't be drawing lines in the sand," he said Tuesday at a Budget Committee hearing.

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Lawmakers Weigh Need for Second Stimulus to Spur Job Growth

WASHINGTON -- The ink is barely dry on the $787 billion economic stimulus package enacted by Congress, and talk is already beginning on Capitol Hill of the need for a second measure to spur job growth.